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Principles of Industrial Engineering: Organizational Structure: Process & Product Organization

The document discusses organizational structures for manufacturing companies, specifically process-focused and product-focused structures. A process-focused structure has manufacturing organized by departments, with managers overseeing specific processes. It allows for close control over costs, timelines, and quality but coordination across functions can be challenging. A product-focused structure groups manufacturing by individual products, with product managers making decisions independently, which can compromise costs and schedules in favor of individual products. The document compares advantages and disadvantages of each approach.

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Hari Krishna Reminisetti
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13 views

Principles of Industrial Engineering: Organizational Structure: Process & Product Organization

The document discusses organizational structures for manufacturing companies, specifically process-focused and product-focused structures. A process-focused structure has manufacturing organized by departments, with managers overseeing specific processes. It allows for close control over costs, timelines, and quality but coordination across functions can be challenging. A product-focused structure groups manufacturing by individual products, with product managers making decisions independently, which can compromise costs and schedules in favor of individual products. The document compares advantages and disadvantages of each approach.

Uploaded by

Hari Krishna Reminisetti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Principles of Industrial Engineering

Organizational Structure: Process & Product Organization

DHEERENDRA KUMAR DWIVEDI


MECHANICAL & INDUSTRIAL ENGINEERING DEPARTMENT

1
Policy of Org. for manufacturing
• Manufacturing
– To order: custom designed, low
volume and high variety
– To stock: standard products,
high volume and low variety
As per manufacturing strategy,
Organizations need to develop
suitable organization structure:
product, process focused,
matrix/mix
2
•
Process focussed
Bottom to top organizational
Organization
representation
• Top: Plant manager including
support functions
– Materials control
– Quality control
– Industrial engineering
– Maintenance
– Manufacturing
– Purchase • Lower: primarily supervisory
structure, department wise
• Middle: Manager •Expertise as per function
– Wider span of control •Supervise, coordinate use of
– Interacts with top management resources man, m/c, material
3
Process focussed...
• At top level of plant managers
Product design is separate at the
also there is
top : not to get influenced by
– Product design manufacturing for quality and
– Finance specification
– Plant Manager
– Marketing
– Personnel
Coordination across functions is an
• Large organization with number issue
of plans, plant manager takes Time, cost are not on priority
care of all these functions also.
4
Product focus organization
• Less control on cost, time, quality
• Decentralized authority
• Each product managers work like
independent department
• Supervisor: Responsible for execution
of plan through staff under
– production planning, quality,
scheduling, inventory
– Reports to product manager
– Less influence on decision making
5

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